Should we bother with KPIs?

It’s a big question but one I think is really important to answer.

In this newsletter, i’ll give you the arguments for and against KPIs, then share with you a free ‘KPIs calculator' so you can build your own [if you want to].

Let’s dive in.

Definition of KPIs:

KPIs [key performance indicators] are a numerical goal[s] anyone can use to drive a specific outcome[s].

For example; if your target is 10 qualified leads a month = it’s there to drive the behaviours needed to generate 10 qualified leads a month.

Those behaviours might be hard work [in the form of activity] but they also might be urgency based the longer the month goes on.

The key is knowing the number [the KPI] drives a behaviour. Your job is to either be aware of that behaviour as a seller or aware of the behaviours you’re driving as a leader.

The ‘Yes’ Argument:

The first thing I was introduced to when I started my sales career was KPIs.

To be specific it was 200 calls a day and 2 hours on the phone.

That was what my boss decided was a demonstration of effort and would therefore get me the result I (and he) so craved.

It gave me a lot of focus - mostly from fear - but the focus it gave me was undeniable. There was no way I wasn’t making those calls everyday.

And that’s the argument for KPIs - they can give you or your team an undeniable focus on a goal.

The ‘No’ Argument:

For me the goal was 200 calls a day and no matter what I hit that goal.

Now that would be great if dials made money. Unfortunately they don’t so in this case the KPI was driving the wrong behaviour.

Sure I hit target target each and every month so the argument was the dials worked.

But what about the rest of the team? Very few people did. In fact of the 8 people that started alongside me only I was left standing 9 months into the job.

The other issue for me was that instead of me focusing on calling the best fit people to start a conversation with I would call anyone and everyone to make sure my dials were done.

The result = a huge waste of time.

The consequences = lost resource and money for the business.

Now imagine I am a sales rep who is actually better at emailing than I am at calling [I’m not btw].

The KPI of 200 calls a day would mean I’m spending hours every single day not playing to my strengths.

The result = a huge waste of time.

The consequences = lost resource and money from the business and I’d probably leave [in my case all the 8 other people I started with].

And that’s the argument for no KPIs. If they aren’t designed in a way that maximises each individuals potential whats the point?

Is a dashboard full of activity metrics really want you want?

I think not.

The ‘Other’ Option:

There is no doubt KPIs can be helpful but the real challenge is making sure you’re setting the right ones for each and every individual if you’re a leader or for yourself if you’re a seller.

When I’m creating KPIs for teams I consider 2 things:

1. Am I playing to each individuals strengths?

2. Is the KPI helping my team achieve the ‘‘North Star’’?

I do the same for myself:

1. Am I playing to my strengths here?

2. Is the KPI helping me achieve my ‘‘North Star’’?

[A North Star is your BIG goal].

By creating KPIs that are focused on each individuals strengths you maximise your greatest resource [your peoples time].

99.9% of the teams I coach are working at 20% capacity because their KPIs are team focused and force SDRs and AEs to play to their weaknesses everyday.

Have you outlined what the north star is and worked backwards from it? Most sales teams I work with have a north star of ‘‘more revenue’’ but very rarely do their KPIs align to driving the behaviours that make it happen.

It’s why in my SDR Leader Bootcamp we have an entire Masterclass on building your metrics, KPIs and team goals.

Because what’s the point of setting people off to work on the wrong things everyday?

If you’re interested in building your KPIs [for teams and individuals] here’s a free ‘‘KPIs Calculator’’. Just make a copy and it’s yours forever.

Hope it’s helpful.

See you next week.

Cheers, Chris

PS. further reading on KPIs here if you’re interested…